false00007890190000789019msft:NotesThreePointOneTwoFivePercentDueDecemberSixTwentyTwentyEightMember2024-01-302024-01-300000789019us-gaap:CommonStockMember2024-01-302024-01-300000789019msft:NotesTwoPointSixTwoFivePercentDueMayTwoTwentyThirtyThreeMember2024-01-302024-01-3000007890192024-01-302024-01-30

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) January 30, 2024

Microsoft Corporation

 

 

 

 

 

Washington

 

001-37845

91-1144442

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

(IRS Employer

Identification No.)

 

 

 

One Microsoft Way, Redmond, Washington

98052-6399

(425) 882-8080

www.microsoft.com/investor

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

 

Title of each class

 

Trading Symbol

 

Name of exchange on which registered

 

 

 

 

 

Common stock, $0.00000625 par value per share

 

MSFT

 

Nasdaq

3.125% Notes due 2028

 

MSFT

 

Nasdaq

2.625% Notes due 2033

 

MSFT

 

Nasdaq

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨


 

Item 2.02.

Results of Operations and Financial Condition

On January 30, 2024, Microsoft Corporation issued a press release announcing its financial results for the fiscal quarter ended December 31, 2023. A copy of the press release is furnished as Exhibit 99.1 to this report.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01.

Financial Statements and Exhibits

(d) Exhibits:

99.1

Press release, dated January 30, 2024, issued by Microsoft Corporation

 

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 


 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

MICROSOFT CORPORATION

 

(Registrant)

 

 

Date: January 30, 2024

/s/ ALICE L. JOLLA

 

Alice L. Jolla

 

Corporate Vice President and

Chief Accounting Officer

 


Exhibit 99.1

Microsoft Cloud Strength Drives Second Quarter Results

REDMOND, Wash. — January 30, 2024 — Microsoft Corp. today announced the following results for the quarter ended December 31, 2023, as compared to the corresponding period of last fiscal year:

Revenue was $62.0 billion and increased 18% (up 16% in constant currency)
Operating income was $27.0 billion and increased 33%, and increased 25% non-GAAP (up 23% in constant currency)
Net income was $21.9 billion and increased 33%, and increased 26% non-GAAP (up 23% in constant currency)
Diluted earnings per share was $2.93 and increased 33%, and increased 26% non-GAAP (up 23% in constant currency)

Microsoft completed the acquisition of Activision Blizzard, Inc. (“Activision”) on October 13, 2023. Financial results from the acquired business are reported in the More Personal Computing segment.

"We’ve moved from talking about AI to applying AI at scale," said Satya Nadella, chairman and chief executive officer of Microsoft. "By infusing AI across every layer of our tech stack, we’re winning new customers and helping drive new benefits and productivity gains across every sector.”

“Strong execution by our sales teams and partners drove Microsoft Cloud revenue to $33.7 billion, up 24% (up 22% in constant currency) year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

The following table reconciles our financial results reported in accordance with generally accepted accounting principles (GAAP) to non-GAAP financial results. Additional information regarding our non-GAAP definition is provided below. All growth comparisons relate to the corresponding period in the last fiscal year.

 

 

Three Months Ended December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 ($ in millions, except per share amounts)

 

Revenue

 

Operating
Income

 

Net Income

 

Diluted
Earnings
per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022 As Reported (GAAP)

 

$52,747

 

$20,399

 

$16,425

 

$2.20

Severance, hardware-related impairment, and lease consolidation costs

 

-

 

1,171

 

946

 

0.12

2022 As Adjusted (non-GAAP)

 

$52,747

 

$21,570

 

$17,371

 

$2.32

2023 As Reported (GAAP)

 

$62,020

 

$27,032

 

$21,870

 

$2.93

Percentage Change Y/Y (GAAP)

 

18%

 

33%

 

33%

 

33%

Percentage Change Y/Y Constant Currency

 

16%

 

30%

 

30%

 

30%

Percentage Change Y/Y (non-GAAP)

 

18%

 

25%

 

26%

 

26%

Percentage Change Y/Y (non-GAAP) Constant Currency

 

16%

 

23%

 

23%

 

23%

Business Highlights

Revenue in Productivity and Business Processes was $19.2 billion and increased 13% (up 12% in constant currency), with the following business highlights:

Office Commercial products and cloud services revenue increased 15% (up 13% in constant currency) driven by Office 365 Commercial revenue growth of 17% (up 16% in constant currency)
Office Consumer products and cloud services revenue increased 5% (up 4% in constant currency) and Microsoft 365 Consumer subscribers grew to 78.4 million
LinkedIn revenue increased 9% (up 8% in constant currency)

 

 


Dynamics products and cloud services revenue increased 21% (up 19% in constant currency) driven by Dynamics 365 revenue growth of 27% (up 24% in constant currency)

Revenue in Intelligent Cloud was $25.9 billion and increased 20% (up 19% in constant currency), with the following business highlights:

Server products and cloud services revenue increased 22% (up 20% in constant currency) driven by Azure and other cloud services revenue growth of 30% (up 28% in constant currency)

Revenue in More Personal Computing was $16.9 billion and increased 19% (up 18% in constant currency), with the following business highlights:

Windows revenue increased 9% with Windows OEM revenue growth of 11% and Windows Commercial products and cloud services revenue growth of 9% (up 7% in constant currency)
Devices revenue decreased 9% (down 10% in constant currency)
Xbox content and services revenue increased 61% (up 60% in constant currency) driven by 55 points of net impact from the Activision acquisition
Search and news advertising revenue excluding traffic acquisition costs increased 8% (up 7% in constant currency)

Microsoft returned $8.4 billion to shareholders in the form of share repurchases and dividends in the second quarter of fiscal year 2024.

Business Outlook

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Quarterly Highlights, Product Releases, and Enhancements

Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.

Here are the major product releases and other highlights for the quarter, organized by product categories, to help illustrate how we are accelerating innovation across our businesses while expanding our market opportunities.

Environmental, Social, and Governance (ESG)

To better execute on Microsoft’s mission, we focus our Environmental, Social, and Governance (ESG) efforts where we can have the most positive impact. To learn more about our latest initiatives and priorities, please visit our investor relations ESG website.

Webcast Details

Satya Nadella, chairman and chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Keith Dolliver, corporate secretary and deputy general counsel, and Brett Iversen, vice president of investor relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on January 30, 2025.

 

 


Non-GAAP Definition

Q2 charge. In the second quarter of fiscal year 2023, Microsoft recorded costs related to decisions announced on January 18th, 2023, including employee severance expenses, impairment charges resulting from changes to our hardware portfolio, and costs related to lease consolidation activities.

Microsoft has provided non-GAAP financial measures related to the Q2 charge to aid investors in better understanding our performance. Microsoft believes these non-GAAP measures assist investors by providing additional insight into its operational performance and help clarify trends affecting its business. For comparability of reporting, management considers non-GAAP measures in conjunction with GAAP financial results in evaluating business performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Constant Currency

Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding our performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Financial Performance Constant Currency Reconciliation

 

 

Three Months Ended December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 ($ in millions, except per share amounts)

 

Revenue

 

Operating
Income

 

Net Income

 

Diluted
Earnings
per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022 As Reported (GAAP)

 

$52,747

 

$20,399

 

$16,425

 

$2.20

2022 As Adjusted (non-GAAP)

 

$52,747

 

$21,570

 

$17,371

 

$2.32

2023 As Reported (GAAP)

 

$62,020

 

$27,032

 

$21,870

 

$2.93

Percentage Change Y/Y (GAAP)

 

18%

 

33%

 

33%

 

33%

Percentage Change Y/Y (non-GAAP)

 

18%

 

25%

 

26%

 

26%

Constant Currency Impact

 

$756

 

$565

 

$510

 

$0.07

Percentage Change Y/Y Constant Currency

 

16%

 

30%

 

30%

 

30%

Percentage Change Y/Y (non-GAAP) Constant Currency

 

16%

 

23%

 

23%

 

23%

 

 

Segment Revenue Constant Currency Reconciliation

 

 

Three Months Ended December 31,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 ($ in millions)

 

Productivity and
Business Processes

 

Intelligent Cloud

 

More Personal
Computing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022 As Reported (GAAP)

 

$17,002

 

$21,508

 

$14,237

2023 As Reported (GAAP)

 

$19,249

 

$25,880

 

$16,891

Percentage Change Y/Y (GAAP)

 

13%

 

20%

 

19%

Constant Currency Impact

 

$230

 

$367

 

$159

Percentage Change Y/Y Constant Currency

 

12%

 

19%

 

18%

 

 

 


 

Selected Product and Service Revenue Constant Currency Reconciliation

 

 

Three Months Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage Change Y/Y (GAAP)

 

Constant Currency Impact

 

Percentage Change Y/Y Constant Currency

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Microsoft Cloud

 

24%

 

(2)%

 

22%

Office Commercial products and cloud services

 

15%

 

(2)%

 

13%

Office 365 Commercial

 

17%

 

(1)%

 

16%

Office Consumer products and cloud services

 

5%

 

(1)%

 

4%

LinkedIn

 

9%

 

(1)%

 

8%

Dynamics products and cloud services

 

21%

 

(2)%

 

19%

Dynamics 365

 

27%

 

(3)%

 

24%

Server products and cloud services

 

22%

 

(2)%

 

20%

Azure and other cloud services

 

30%

 

(2)%

 

28%

Windows

 

9%

 

0%

 

9%

Windows OEM

 

11%

 

0%

 

11%

Windows Commercial products and cloud services

 

9%

 

(2)%

 

7%

Devices

 

(9)%

 

(1)%

 

(10)%

Xbox content and services

 

61%

 

(1)%

 

60%

Search and news advertising excluding traffic acquisition costs

 

8%

 

(1)%

 

7%

 

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

intense competition in all of our markets that may lead to lower revenue or operating margins;
focus on cloud-based services presenting execution and competitive risks;
significant investments in products and services that may not achieve expected returns;
acquisitions, joint ventures, and strategic alliances that may have an adverse effect on our business;
impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;
cyberattacks and security vulnerabilities that could lead to reduced revenue, increased costs, liability claims, or harm to our reputation or competitive position;
disclosure and misuse of personal data that could cause liability and harm to our reputation;
the possibility that we may not be able to protect information stored in our products and services from use by others;
abuse of our advertising, professional, marketplace, or gaming platforms that may harm our reputation or user engagement;
the development of the internet of things presenting security, privacy, and execution risks;
issues about the use of artificial intelligence in our offerings that may result in reputational or competitive harm, or legal liability;

 

 


excessive outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;
quality or supply problems;
government enforcement under competition laws and new market regulation may limit how we design and market our products;
potential consequences of trade and anti-corruption laws;
potential consequences of existing and increasing legal and regulatory requirements;
laws and regulations relating to the handling of personal data that may impede the adoption of our services or result in increased costs, legal claims, fines, or reputational damage;
claims against us that may result in adverse outcomes in legal disputes;
uncertainties relating to our business with government customers;
additional tax liabilities;
an inability to protect and utilize our intellectual property may harm our business and operating results;
claims that Microsoft has infringed the intellectual property rights of others;
damage to our reputation or our brands that may harm our business and operating results;
adverse economic or market conditions that may harm our business;
catastrophic events or geo-political conditions, such as the COVID-19 pandemic, that may disrupt our business;
exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange and
the dependence of our business on our ability to attract and retain talented employees.

For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

All information in this release is as of December 31, 2023. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

For more information, press only:

Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, rrt@we-worldwide.com

For more information, financial analysts and investors only:

Brett Iversen, Vice President, Investor Relations, (425) 706-4400

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.

 

 


MICROSOFT CORPORATION

 

INCOME STATEMENTS

(In millions, except per share amounts) (Unaudited)

 

 

Three Months Ended
December 31,

 

Six Months Ended
December 31,

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

Product

 

$18,941

 

$16,517

 

$34,476

 

$32,258

Service and other

 

43,079

 

36,230

 

84,061

 

70,611

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

62,020

 

52,747

 

118,537

 

102,869

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

Product

 

5,964

 

5,690

 

9,495

 

9,992

Service and other

 

13,659

 

11,798

 

26,430

 

22,948

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cost of revenue

 

19,623

 

17,488

 

35,925

 

32,940

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

42,397

 

35,259

 

82,612

 

69,929

Research and development

 

7,142

 

6,844

 

13,801

 

13,472

Sales and marketing

 

6,246

 

5,679

 

11,433

 

10,805

General and administrative

 

1,977

 

2,337

 

3,451

 

3,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

27,032

 

20,399

 

53,927

 

41,917

Other expense, net

 

(506)

 

(60)

 

(117)

 

(6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

26,526

 

20,339

 

53,810

 

41,911

Provision for income taxes

 

4,656

 

3,914

 

9,649

 

7,930

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$21,870

 

$16,425

 

$44,161

 

$33,981

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

Basic

 

$2.94

 

$2.20

 

$5.94

 

$4.56

Diluted

 

$2.93

 

$2.20

 

$5.92

 

$4.54

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

7,432

 

7,451

 

7,431

 

7,454

Diluted

 

7,468

 

7,473

 

7,465

 

7,479

 

 

 

 

 

 

 

 

 

 

 

 


COMPREHENSIVE INCOME STATEMENTS

(In millions) (Unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

December 31,

 

December 31,

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$21,870

 

$16,425

 

$44,161

 

$33,981

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

Net change related to derivatives

 

(3)

 

(32)

 

18

 

(25)

Net change related to investments

 

1,331

 

348

 

1,071

 

(1,549)

Translation adjustments and other

 

660

 

570

 

305

 

(205)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

1,988

 

886

 

1,394

 

(1,779)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$23,858

 

$17,311

 

$45,555

 

$32,202

 

 

 

 

 

 

 

 

 

 

 

 


BALANCE SHEETS

(In millions) (Unaudited)

 

 

December 31,
2023

 

June 30,
2023

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$17,305

 

$34,704

Short-term investments

 

63,712

 

76,558

 

 

 

 

 

 

 

 

 

 

Total cash, cash equivalents, and short-term investments

 

81,017

 

111,262

Accounts receivable, net of allowance for doubtful accounts of $591 and $650

 

42,831

 

48,688

Inventories

 

1,615

 

2,500

Other current assets

 

21,930

 

21,807

 

 

 

 

 

 

 

 

 

 

Total current assets

 

147,393

 

184,257

Property and equipment, net of accumulated depreciation of $72,949 and $68,251

 

112,308

 

95,641

Operating lease right-of-use assets

 

16,398

 

14,346

Equity investments

 

13,367

 

9,879

Goodwill

 

118,931

 

67,886

Intangible assets, net

 

29,896

 

9,366

Other long-term assets

 

32,265

 

30,601

 

 

 

 

 

 

 

 

 

 

Total assets

 

$470,558

 

$411,976

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$17,695

 

$18,095

Short-term debt

 

27,041

 

0

Current portion of long-term debt

 

2,250

 

5,247

Accrued compensation

 

8,813

 

11,009

Short-term income taxes

 

5,787

 

4,152

Short-term unearned revenue

 

43,068

 

50,901

Other current liabilities

 

16,362

 

14,745

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

121,016

 

104,149

Long-term debt

 

44,928

 

41,990

Long-term income taxes

 

25,890

 

25,560

Long-term unearned revenue

 

2,966

 

2,912

Deferred income taxes

 

2,548

 

433

Operating lease liabilities

 

14,155

 

12,728

Other long-term liabilities

 

20,787

 

17,981

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

232,290

 

205,753

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

Stockholders' equity:

 

 

 

 

Common stock and paid-in capital - shares authorized 24,000; outstanding 7,432 and 7,432

 

97,480

 

93,718

Retained earnings

 

145,737

 

118,848

Accumulated other comprehensive loss

 

(4,949)

 

(6,343)

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

238,268

 

206,223

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$470,558

 

$411,976

 

 

 

 

 

 

 

 


CASH FLOWS STATEMENTS

(In millions) (Unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

December 31,

 

December 31,

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations

 

 

 

 

 

 

 

 

Net income

 

$21,870

 

$16,425

 

$44,161

 

$33,981

Adjustments to reconcile net income to net cash from operations:

 

 

 

 

 

 

 

 

Depreciation, amortization, and other

 

5,959

 

3,648

 

9,880

 

6,438

Stock-based compensation expense

 

2,828

 

2,538

 

5,335

 

4,730

Net recognized losses on investments and derivatives

 

198

 

214

 

212

 

192

Deferred income taxes

 

(1,702)

 

(1,305)

 

(2,270)

 

(2,496)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

(2,951)

 

(3,164)

 

8,083

 

8,565

Inventories

 

1,474

 

1,305

 

969

 

762

Other current assets

 

725

 

(392)

 

(71)

 

(724)

Other long-term assets

 

(1,427)

 

(65)

 

(3,440)

 

(731)

Accounts payable

 

(2,521)

 

(2,058)

 

(1,307)

 

(3,625)

Unearned revenue

 

(5,538)

 

(5,186)

 

(9,664)

 

(8,508)

Income taxes

 

(1,554)

 

(2,863)

 

(129)

 

(2,453)

Other current liabilities

 

1,518

 

1,819

 

(2,588)

 

(2,205)

Other long-term liabilities

 

(26)

 

257

 

265

 

445

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash from operations

 

18,853

 

11,173

 

49,436

 

34,371

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financing

 

 

 

 

 

 

 

 

Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net

 

(8,490)

 

0

 

10,202

 

0

Proceeds from issuance of debt

 

10,773

 

0

 

17,846

 

0

Repayments of debt

 

(2,916)

 

(750)

 

(4,416)

 

(1,750)

Common stock issued

 

261

 

243

 

946

 

818

Common stock repurchased

 

(4,000)

 

(5,459)

 

(8,831)

 

(11,032)

Common stock cash dividends paid

 

(5,574)

 

(5,066)

 

(10,625)

 

(9,687)

Other, net

 

(201)

 

(317)

 

(508)

 

(581)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash from (used in) financing

 

(10,147)

 

(11,349)

 

4,614

 

(22,232)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing

 

 

 

 

 

 

 

 

Additions to property and equipment

 

(9,735)

 

(6,274)

 

(19,652)

 

(12,557)

Acquisition of companies, net of cash acquired, and purchases of intangible and other assets

 

(65,029)

 

(679)

 

(66,215)

 

(1,028)

Purchases of investments

 

(4,258)

 

(11,599)

 

(12,718)

 

(16,612)

Maturities of investments

 

4,150

 

6,928

 

19,868

 

13,590

Sales of investments

 

1,600

 

4,775

 

6,930

 

7,486

Other, net

 

1,347

 

(301)

 

365

 

(1,161)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash used in investing

 

(71,925)

 

(7,150)

 

(71,422)

 

(10,282)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of foreign exchange rates on cash and cash equivalents

 

72

 

88

 

(27)

 

(142)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

(63,147)

 

(7,238)

 

(17,399)

 

1,715

Cash and cash equivalents, beginning of period

 

80,452

 

22,884

 

34,704

 

13,931

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$17,305

 

$15,646

 

$17,305

 

$15,646

 

 

 

 

 

 

 

 

 

 

 

 


SEGMENT REVENUE AND OPERATING INCOME

(In millions) (Unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

December 31,

 

December 31,

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Productivity and Business Processes

 

$19,249

 

$17,002

 

$37,841

 

$33,467

Intelligent Cloud

 

25,880

 

21,508

 

50,139

 

41,833

More Personal Computing

 

16,891

 

14,237

 

30,557

 

27,569

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$62,020

 

$52,747

 

$118,537

 

$102,869

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Productivity and Business Processes

 

$10,284

 

$8,175

 

$20,254

 

$16,498

Intelligent Cloud

 

12,461

 

8,904

 

24,212

 

17,882

More Personal Computing

 

4,287

 

3,320

 

9,461

 

7,537

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$27,032

 

$20,399

 

$53,927

 

$41,917

 

 

 

 

 

 

 

 

 

 

 

 

 


v3.24.0.1
Document and Entity Information
Jan. 30, 2024
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Jan. 30, 2024
Entity Registrant Name Microsoft Corporation
Entity Incorporation, State or Country Code WA
Entity File Number 001-37845
Entity Tax Identification Number 91-1144442
Entity Address, Address Line One One Microsoft Way
Entity Address, City or Town Redmond
Entity Address, State or Province WA
Entity Address, Postal Zip Code 98052-6399
City Area Code 425
Local Phone Number 882-8080
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0000789019
Common Stock [Member]  
Entity Information [Line Items]  
Title of 12(b) Security Common stock, $0.00000625 par value per share
Trading Symbol MSFT
Security Exchange Name NASDAQ
3.125% Notes Due 2028 [Member]  
Entity Information [Line Items]  
Title of 12(b) Security 3.125% Notes due 2028
Trading Symbol MSFT
Security Exchange Name NASDAQ
2.625% Notes Due 2033 [Member]  
Entity Information [Line Items]  
Title of 12(b) Security 2.625% Notes due 2033
Trading Symbol MSFT
Security Exchange Name NASDAQ

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